Dow, S&P 500 and Nasdaq Post New Records as Senate Reaches Deal to End Shutdown

Stocks jumped to new records on Monday, Jan. 22, after the Senate reached agreement on a deal that would end the government shutdown that began at midnight on Friday.

The deal would allow thousands of furloughed federal workers to return to work and others to expect their next paychecks to arrive on time.

The Senate advanced a bill reopening federal agencies through Feb. 8 after Democrats relented and lifted their blockade against the legislation, the Associated Press reported.

The Dow Jones Industrial Average finished up 0.55% to 26,214. The S&P 500 rose 0.81% and the Nasdaq rose 0.98% -- both indexes posted new record closes.

Celgene Corp. (CELG) said Monday it reached a deal to buy Juno Therapeutics Inc. (JUNO) for $87 a share in cash, or $9 billion. Juno shares rallied 26% on Monday to $85.76.

Sanofi SA (SNY) reached an agreement to buy Waltham, Massachusetts-based Bioverativ Inc. (BIVV) , a hemophilia specialist, in a move that will boost the French company's profile for fighting rare diseases. Sanofi said Monday it will pay $105 a share in cash, a 64% premium to Bioverativ's closing price on Friday, Jan. 19, of $64.11. Bioverativ shares jumped 62%.

American International Group Inc. (AIG) said Monday it was buying insurance firm Validus Holdings Ltd. (VR) in an all-cash deal for $5.56 billion. Validus shareholders will receive $68 for each share they own. Validus shares rose 44%.

Shares of Xerox Corp. (XRX) rose 2.6% on Monday after Carl Icahn and Xerox's third-largest shareholder, Darwin Deason, formed a group to target the document technology company and shake up the business.

With just more than 10% of S&P 500 companies reporting fourth-quarter figures so far this year, earnings have fallen by 0.2% from the same period in 2016, according to data from FactSet, as banks reduced the value of their tax credits following the December passage of the Tax Cuts and Jobs Act by Republican lawmakers. Stripping away bank earnings, however, would lift the growth rate to 11.2%, FactSet data indicated, a figure that will likely balloon to 18.6% for all of 2018.